"Those born from 1996 on do not remember 9/11, and certainly not in the way those even two or three years older do," he said. "Other than the defining moment, everything else tends to be more trendlike, and you can see more of a path of continued change from millennials to Gen Z, including technology, mobile adoption, etc."

Gen Zers were born into a world with technology, whereas millennials were introduced to it. Olivia Harris/Getty

Ongoing research, he said, will help the organization discover if, when, or how these continued changes affect a generation that has grown up with these things since birth, rather than being introduced to them.

But not knowing a world without technology isn't the only difference setting Gen Z apart from millennials — Gen Z is also more social-justice-oriented, less brand conscious, and more connected to global interests and culture than millennials, Business Insider's Rachel Premack, who interviewed 100 Gen Zers, reported.

"However, it is 9/11 that is the defining and dividing event," Dorsey said. "Either you remember it and all the emotion that goes with it or you don't, and if you don't, then you're in Gen Z."

Read more: Millennials love their brands, Gen Zs are terrified of college debt, and 6 other ways Gen Zs and millennials are totally different

9/11 and the Great Recession shaped Gen Z's practical money habits

In dividing two generations, the aftermath of 9/11 created two groups with varying financial habits.

Its aftermath showed the uncertainty and fragility of the world, Dorsey said. "This, in combination with Gen X as parents and the Great Recession, [is] what we believe to be shaping Gen Z's very practical view of money," he said. "Our research into this generation shows they are much more conservative with their spending, and many are trying to graduate college with as little debt as possible."

Many Gen Zers expressed to Premack that they're worried about college debt, which is affecting where they're choosing to go to college. "Why sink yourself into exorbitant amounts of debt when you can learn everything online or learn a specific subject matter at a fraction of the price?" Tiffany Zhong, a Gen Zer who dropped out of University of California, Berkeley, to become a venture capitalist, .

Younger millennials experienced the recovery period and were able to learn from the older millennials who bore the brunt of the recession, according to Dorsey. This has made them risk-averse and practical with money, from saving for emergencies to contributing to a retirement account, he said.

While Gen Z and millennials share this practical approach to money, Gen Z is simply beating millennials to the same landmarks: They're building wealth and financially preparing for the future earlier.

Ultimately, while many millennials are playing catch-up with their finances, Gen Z is increasingly trying to get ahead of the game.

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